Apparently the fear of increased premiums in reaction to the new Health Care Reform law recently passed by Congress is prompting Senate Democrats to propose a bill that would
give the federal government the power to regulate health insurance premiums.
Of course, you never saw this coming, right?
It appears our overlords simply do not trust those greedy insurance companies to not raise their premiums in reaction to the new law. Or as Sen Tom Harkin explains it:
“Rate review authority is needed to protect consumers from insurance companies’ jacking up premiums simply because they can. Protections must be in place to ensure that companies do not take advantage of current market conditions before health reform fundamentally changes the way they do business in 2014.”
You have to laugh (or throw up a little) at the economic naiveté and pure hypocrisy contained in that statement. Naive because it totally discounts the market and opts for central (and populist) top-down control (and we know how well that works) and hypocritical because the federal government is presently raising taxes before 2014 to “pay” for the health care monstrosity they’ve foisted upon us.
Care for a little more sanctimonious drivel intended to justify this power grab? Diane Feinstein:
“Water and power are essential for life,” Mrs. Feinstein said. “So they are heavily regulated, and rate increases must be approved. Health insurance is also vital for life. It too should be strictly regulated so that people can afford this basic need.”
Really? Is that why it has to be “strictly regulated”? Or is it because if the market actually begins to react properly to the artificial pressure brought by the legislation Democrats passed it will be shown up for the fiscal black hole and legislative piece of garbage it is?
Sen. Lamar Alexander brings a little context to the debate:
“Health insurance companies’ profits for one year equal about two days of health care spending in the United States. So even if we were to take away all the profits of the so-called greedy insurance companies, that would still leave 363 days a year when health care costs are expanding at a rate our country cannot afford.”
Let’s also remember that the 4 major health insurance companies in Massachusetts – all non-profit organizations – requested over 200 premium increases and were denied all but a few. Was it greed that drove them to request those increases?
Grace-Marie Turner, president of the Galen Institute, a research center that advocates free-market health policies, said the Democrats’ proposal was unlikely to succeed in lowering insurance costs.
“Capping premiums without recognizing the forces that are driving up costs would be like tightening the lid on a pressure cooker while the heat is being turned up,” Mrs. Turner said.
Instead, it gives single-payer types (like Harkin and Feinstein) a way to hurry along the failure of the private health insurance market and eventually, by fiat, usher in government health care.
Mr. Harkin praised a bill introduced by Senator Dianne Feinstein, Democrat of California, that would give the secretary of health and human services the power to review premiums and block “any rate increase found to be unreasonable.” Under the bill, the federal government could regulate rates in states where state officials did not have “sufficient authority and capability” to do so.
Arbitrary, capricious and, if passed, eventually deadly. Just hide and watch.